Alabama trustees hang tuition increase on costs, cuts

Friday

Jun 13, 2014 at 11:00 PMJun 13, 2014 at 11:06 PM

Tuition for students at the Birmingham and Tuscaloosa campuses of the University of Alabama System will increase 4 percent this fall, a hike administrators say is necessary to offset increasing expenses.

By Ed EnochStaff writer

Tuition for students at the Birmingham and Tuscaloosa campuses of the University of Alabama System will increase 4 percent this fall, a hike administrators say is necessary to offset increasing expenses.The UA board of trustees approved the increase during a meeting Friday in Tuscaloosa.System Chancellor Robert Witt opened his report by noting five-year projections predict the growth of state funding would be outpaced by increases in UA's expenses, such as employee and retiree benefits.During committee meetings Thursday, Ray Hayes, executive vice chancellor of finance and operations said the system is projecting 2.3 percent growth in the Education Trust Fund allocations compared to 7.5 percent growth in the cost of employee benefits.“The prognosis not encouraging,” Witt said.The tuition will increase for full-time in-state students at the University of Alabama and the University of Alabama at Birmingham by about $188 per semester. Tuition will increase by $500 per semester for non-residents at UA, and about $413 for non-residents at UAB. UA law students will see tuition increase by about 3 percent. In April, the board approved a similar increase for the system's medical, dentistry and optometry students. This spring, the board approved moving tuition rates at the University of Alabama in Huntsville to a block rate to encourage students to take more than 12 hours of classes.Minimizing tuition increases remained a priority, according to Witt. The chancellor also reiterated previous pledges the system was actively evaluating to increase efficiencies on its three campuses. Becoming more efficient was imperative, he said. Witt highlighted plans to self-insure system vehicles in the fall as an example of efforts to become more efficient. The change would save the system $300,000 to $400,000 annually, he said.Witt said the move will push annual savings from efforts to become more efficient past $8 million.The chancellor said the system will continue to focus on areas that have generated savings as well as evaluating major service contracts and facilities utilization on the three campuses. Witt offered the examples of food service, health benefits and bookstore arrangements.“If we can have marginal improvements in these three areas the dollar savings will be substantial,” Witt said.Witt praised UA President Judy Bonner's work as president and provost to maximize the efficiencies of scheduling facilities use at the Capstone. Witt said had Bonner volunteered to make UA scheduling guidelines and software available.Witt said UAB and UAH have good guidelines in place for scheduling facilities use, but believes UA's guidelines and software will be a helpful resource as the campuses grow.“We are hoping they will grow in a way that will minimize the need for new buildings,” Witt said.By minimizing the need for new facilities, Witt said the system will be able to devote more resources to other strategic priorities.In addition to streamlining operations, Witt said the system must evaluate its programs generally.“We have to ask a different set of questions. Should we even be doing it in the first place?” Witt said.The system has 189 institutes and centers, including four new ones at UAB approved Friday, Witt said. The board approved plans to establish the UAB-Hudson Alpha Center for Genomic Medicine, the Personalized Medicine Institute in the School of Medicine, the UAB Informatics Institute and the Institute of Human Rights.Witt called for guidelines by the fall on each campus to look at all centers and institutes on a periodic basis to evaluate their success.In other business, the board approved beginning preliminary planning for a new $5.2-million UA supply store building near Tutwiler Hall. The 13,281-square-foot retail center at the former site of the Corner Store and existing Bryant Dance Studio will house the Supe Store branch now in Tutwiler Hall and a new Starbucks.The trustees also approved purchasing about $2.5 million in new digital signs, menu boards and sales terminals for the concession stands and concourses in Bryant-Denny Stadium. The purchase will be funded by with Crimson Tide Foundation money.The board authorized the university to enter into negotiations to name an architect for the $20-million renovation of the Bryce Admissions building. The top ranked firms are Birchfield Penuel and Associates of Birmingham, Ellis Architects of Tuscaloosa, and Poole and Co. Architects of Birmingham.The trustees approved architectural services agreements with Fitts Architects of Tuscaloosa for the $6.2 million demolition of the existing Phi Kappa Psi fraternity house and construction of a new house in the 300 block of University Boulevard and with Davis Architects of Birmingham for the $5.1 million build out of the remaining space in the Science and Engineering Building.The board approved increasing the budget for the new rowing facility under construction at Manderson Landing to $4.65 million.The board also authorized issuing construction contracts for the $15.6 million renovation of Houser Hall and a new south campus parking deck.

Never miss a story

Choose the plan that's right for you.
Digital access or digital and print delivery.